Impact of Social Media on Consumer Purchasing Decision

Managerial Project

ABSTRACT
The role of social media in the life of people today has undoubtedly increased and there is no one
today who is unaware or unaffected by the social media. The extensive marketing campaigns that
are carried out by the companies on such social media platforms has become revolutionary in the
past few years and the creativity level is being set at a higher level every day by the innovative
advertisements. In the current research, the influence of social media tools and platforms on the
buying decision made by the consumer at a global level particularly in relation to the electronic
markets have been evaluated. The researcher has undertaken qualitative research, chosen
inductive research approach, selected Interpretivism philosophy and has used descriptive
approach selected under conclusive research design. Data was collected from primary and
secondary sources and 30 consumers of social media were selected as a sample for the research.
The major finding was that the buying behaviour has been positively affected by the social media
and the dependency of the consumers has increased.

ACKNOWLEDGEMENT
This research project would not have been possible without the guidance of my mentor and
professor under whom I completed my entire study. I would also like to thank my teachers and
guide who helps me at every point. I would like to acknowledge her the support of my friends
and family who constantly motivated me for undertaking research activity. Lastly, I would like
extend my gratitude to the respondents who helped me in drawing relevant interpretations related
to the research.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
INTRODUCTION...........................................................................................................................1
Background.............................................................................................................................1
Aim and Objectives................................................................................................................1
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
Theme 1: To understand the factors associated with social media........................................4
Theme 2: To critically examine the impact of social media on consumer purchasing decision
at international level...............................................................................................................6
Theme 3: To determine the challenges faced by the company due to impact of social media on
consumer purchasing decision..............................................................................................10
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................12
CHAPTER 4: DATA ANALYSIS................................................................................................19
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................34

CHAPTER 1: INTRODUCTION
Topic: “To ascertain the impact of social media on consumer purchasing decision at
global level in the context of electronic market: A study on XYZ Ltd”.
INTRODUCTION
Background
Social media is considered to be one of the most impelling platform which in turn is used
by the consumer in order to make certain purchase decision. Social media is referred to as an
application or a website which helps individuals to share content quick and easily on a real time
basis. Social media is widely used for creating brand awareness which in turn is considered to be
very useful in building relationship with the existing and potential customers. Social media
platforms like social networking (Google +, LinkedIn, Facebook, Instagram, YouTube, Twitter,
Pinterest), Micro blogging (Tumblr, Twitter), personal website, etc. Social media is considered
to be very useful in creating brand awareness which in turn largely influences consumers to
make strategic purchase decision (Impact of Social Media On Consumer Purchase Decisions,
2020). This study will highlight on critically investigating the influence of social media on the
purchasing decision made by the consumer at an international level in relation with the electronic
market. Furthermore, this research project tends to highlight on critically examining the
challenges which has been faced by electronic market due to social media and it also helps in
gaining better perspective on effective recommendation strategies in order to improve the
purchasing decision making at an international level in association with the electronic market.
The XYZ ltd. is considered to be one of the leading company in electronic market. It
tends to deal in several electronic products and services.
Aim and Objectives
Aim
“To ascertain the impact of social media on consumer purchasing decision at global level
in the context of electronic market: A study on XYZ Ltd.”
Research Objectives
 To understand the factors associated with social media.
 To critically examine the impact of social media on consumer purchasing decision at
international level.
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 To determine the challenges faced by the company because of impact of social media on
consumer purchasing decision.
 To provide effective recommendation strategy to improve consumer purchasing decision
with social media.
Research Questions
 What are the key factors associated with social media?
 What is the impact of social media on consumer purchasing decision at international
level?
 What are the challenges faced by the company because of impact of social media on
consumer purchasing decision?
 What are effective recommendation strategy to improve consumer purchasing decision
with social media?
Rationale
The researcher of the study has opted for analysing the impact of social media on the
purchase decision making of the consumers in electronic market because it is considered to be
one of the major issue currently. This topic is selected by the researcher because it is considered
to be of the academic interest of the researcher (Kumar and et.al., 2016). This is the current issue
because consumer tends to focus on evaluating the reviews of the user. This in turn helps in
effectively carrying several business operations. This is considered to be the research issue
currently because rating, reviews, feedback, comments and offering of the competitors on the
social media tends to largely influence the buying decision making of the consumers. The
researcher of the study can resolve the particular issue by effectively gaining broader and wider
perspective on the research study by critically evaluating various themes and variables. The
researcher of the study has opted qualitative research methodology who in turn focuses on
effectively addressing each research questions. The key potential outcome of the study is to gain
better understanding and knowledge related to the subject matter which in turn helps in attaining
aims and objectives of the research (Lindlof and Taylor, 2017)
Research significance
The key significance for carrying out this research study is because carrying out this
research study is considered to be very beneficial for further investigation in the future. This
study material will help journalist and researcher to wider their knowledge related with the
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impact of social media on consumer purchasing decision at global level in the context of
electronic market. This study is also relevant for companies which tends to exist in the electronic
industry. This will help the management of the company to understand how social media
platforms results in influencing the decision making capability of the consumer. It also helps
management in analyzing which social media platform is considered to be the most effective to
gain attention of the consumers towards a particular brand in relation to the electronic market.
Social media is considered to be very vital for promoting the knowledge and capabilities
associated with the personal branding. The helps researcher in grasping to various aspects of the
study.
Chapter structure
Research chapter structure is considered to be the outline of particular set of work which
in turn is very useful in providing appropriate structure of the research towards the particular
dissertation.
Chapter 1: Introduction: This chapter tends to include brief explanation of particular research
background and it also includes aim and objectives of the research study. The introduction
chapter of the study will provide rationale for the particular area of the research topic and in turn
also provides research significance for the particular area of the research.
Chapter 2: Literature review: This chapter consists of the theoretical framework who tends to
provide critical viewpoints of various authors in order to bridge the gap on the particular subject
matter. This part helps in analyzing each themes in order to resolve the research problem using
secondary source.
Chapter 3: Research methodology: This chapter is useful in selecting the right methodology
which tends to contain explanation associated with research philosophy, research design,
research approach, data collection, sampling, data analysis and ethical consideration in order to
carry out research in appropriate and relevant manner.
Chapter 4: Data analysis: This chapter is useful in summarizing, analysing and interpreting the
data collected for the research study through primary source i.e., questionnaire, survey,
interviews, etc. This chapter also includes presentation of the data findings using bar graphs,
tables and pie charts with brief discussion and interpretation of each theme.
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Chapter 5: Conclusion and recommendation: This chapter is useful in summarizing the data in
order to gain conclusive results and findings. Furthermore, this study also helps in giving
recommendable measures and strategies which can be used further to resolve research problems.
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